Construction buyers see output drop again in July

Grant Prior 5 years ago
Share

Construction buyers reported another drop in output during July marking the third consecutive monthly fall on the trot.

The bellwether IHS Markit/CIPS UK Construction Total Activity Index recorded 45.3 in July – below the 50 no-change value.

The latest reading was up from June’s ten-year low of 43.1 but still signalled a marked downturn in total construction activity.

Commercial construction was the worst performing category in July, followed closely by civil engineering as Brexit fears cntinued to delay project starts.

House building fell for the second month in a row during July, but the rate of decline was only modest and eased from the three-year record seen in June.

Construction companies also reported a sharp drop in their confidence regarding the year-ahead outlook for business activity.

The latest reading was the lowest since November 2012 with companies blaming Brexit uncertainty, the prospect of a General Election and delays to infrastructure work.

Tim Moore, Economics Associate Director at IHS Markit, said:“UK construction output remains on a downward trajectory and another sharp drop in new orders has reduced the likelihood of a turnaround in the coming months.

“Total business activity declined at a softer pace than the ten-year record seen in June, but this should not detract attention from the challenges ahead for the construction sector. Customer demand has been squeezed on all sides in recent months, which has pushed down business expectations to the lowest since the second half of 2012.

“July data revealed declines in house building, commercial work and civil engineering, with all three areas suffering to some degree from domestic political uncertainty and delayed decision-making.

“Construction companies have started to respond to lower workloads by cutting back on input buying, staffing numbers and sub-contractor usage. If the current speed of construction sector retrenchment is sustained, it will soon ripple through the supply chain and spillovers to other parts of the UK economy will quickly become apparent.”

Latest news

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
17 hours ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
18 hours ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
18 hours ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
18 hours ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
18 hours ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
4 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
4 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
4 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
4 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
4 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
4 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
4 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
4 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
5 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
5 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
5 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
6 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
5 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
5 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
6 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
6 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
6 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
6 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
6 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
6 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
7 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
7 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
7 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
1 week ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
7 days ago

Contractor services